TelePacific, the California-based CLEC that recently announced plans to acquire two companies, is expanding its senior secured loan facility to include an additional $50 million in financing, according to Moody’s Investors Service, the credit ratings agency.
The $50 million expansion of TelePacific’s senior secured term loan brings the total loan outstanding to $485 million, Moody’s noted in a ratings action.
“The proceeds of the new financing will be used for general corporate purposes, including funding the acquisitions of TeleKenex and OCIX, in addition to potential other acquisitions to augment operations over the next twelve months," stated Moody’s, which affirmed TelePacific’s B3 Corporate Family Rating and the Probability of Default Rating.
Last week, Los Angeles-based TelePacific announced definitive agreements to acquire Telekenex, an IP services provider with offices in San Francisco and Seattle, and its sister company, Orange County Internet Xchange (OCIX Inc.), a dedicated provider of colocation services.
Moody's gave TelePacific a positive rating outlook, reflecting its "views on the positive steps the company is taking to remain competitive and address its cost structure to drive future deleveraging."
TelePacific is the largest CLEC in California and Nevada, serving small and medium-sized businesses.